Rupee soars to four-month high on reforms, hopes for more FII

The market is awaiting the RBI's rate decision at 11 am, with any rate cut likely to lead to a further rally in the rupee.

hidden September 17, 2012 10:05:06 IST
Rupee soars to four-month high on reforms, hopes for more FII

Mumbai: The rupee rose to a four-month high in early trade on Monday with hopes of major foreign inflows after the federal government announced opening up of the aviation and multi-brand retail sectors to overseas direct investment.

At 9.04 am local time, the rupee was at 53.72/73 to the dollar against its previous close of 54.30/31. It rose to a high of 53.66, its highest since 15 May.

Rupee soars to fourmonth high on reforms hopes for more FII

Reuters

The dollar index, which measures the greenback against a basket of major currencies, eased 0.1 percent Monday, having fallen on Friday to levels not seen since late February.

The market is awaiting the RBI's rate decision at 11 am, with any rate cut likely to lead to a further rally in the rupee.

Indian government bond yields also fell on hopes of fiscal consolidation and ahead of the rate decision.

The 10-year yield was down 6 basis points at 8.12 percent.

Reuters

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